Newmont completes sale of stake in Continental Gold for $260m

6 March 2020 (Last Updated March 6th, 2020 12:39)

Newmont Corporation has completed the sale of its 19.9% stake in Continental Gold, as part of the Chinese firm Zijin Mining group’s C$1.4bn ($1.05bn) acquisition of Continental Gold, for a cash consideration of $260m.

Newmont completes sale of stake in Continental Gold for $260m
The fleet of autonomous CAT 793F mining trucks will be fully operational in 2021 at Newmont’s Boddington mine. Credit: Business Wire.

Newmont Corporation has completed the sale of its 19.9% equity stake in Continental Gold, as part of the Chinese firm Zijin Mining’s C$1.4bn ($1.05bn) acquisition of Continental Gold, for a cash consideration of $260m.

Newmont noted that the sale was part of a contractual arrangement to support Zijin Mining’s acquisition of Continental.

This transaction also marks the closing of Zijin Mining’s acquisition of Continental Gold.

In December last year, Zijin Mining signed a definitive agreement to acquire Continental Gold, pursuant to which Zijin Mining agreed to buy all of the outstanding shares of Continental Gold at C$5.50 ($4.14) a share.

Newmont president and CEO Tom Palmer said: “Selling our Continental stake into a strong bid allowed us to generate $260m in cash that will support our disciplined approach to capital allocation, including strengthening our investment grade balance sheet, investing in our highest returning projects, and returning excess cash to our shareholders.

“Combined with the sale of our interests in Continental and KCGM, once we complete the sale of Red Lake this quarter, we will have generated more than $1.4 billion in asset sales in less than a year since closing the Goldcorp acquisition last April.”

Last month, China’s Zijin Mining received approval from the Canadian Investment Canada Act to acquire a 100% equity interest in mining firm Continental Gold for C$1.33bn ($996m).

Newmont’s portfolio of worldwide operations and projects enable it to sequence profitable projects in its pipeline to maintain consistent gold production over a long period.

Last month, Newmont announced that its Boddington mine in Western Australia is set to become the world’s first autonomous gold mine once it becomes fully operational.